Self made millionaire by age 30 (Not through a 401K or IRA)

[Account Closed]

Save money and keep it liquid to invest in real estate, start a business venture, or both.

Tim

[Scott Trench]

Correct - if you aspire to early financial freedom, then you had better be building out MOST of your wealth outside of retirement accounts. That does not mean to ignore them entirely, as there are several viable approaches to accessing the money early. But, money inside a 401(k) can be used only in specific circumstances and requires knowledge or expense to deploy. It does not offer the typical contributor (with relatively little contributed) financial flexibility, the ability to invest easily in real estate, the ability to use extreme leverage (like house-hacking), or ready access in the event that one wants to quit work, start a business, freelance, or otherwise fund an opportunity, investment or otherwise. Yes, it is possible and to the self-employed person's advantage to set up self-directed accounts, but a typical nine to five worker will find few benefits towards the goal of early financial freedom if the majority of their savings are in the form of contributions to retirement accounts.

Nothing wrong with intelligently contributing to retirement accounts. But, you will not achieve the goal of early financial freedom or great wealth in a short time frame if most of your wealth accumulation is going on inside of a retirement account. If you do build wealth in a retirement account, understand the consequences, and have a plan to access the money early if you aspire to early financial freedom.